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The 4 Best Employee Management Software Solutions in 2024
Despite organizations often declaring that employees are their most valuable asset, their actions don't always align with this sentiment.
The good news is that the range of business solutions tailored for deskless workers is expanding. This is evident from the growing number of employee management software solutions that cater to their unique requirements.
Deskless or remote workers, who often operate without a fixed location, set hours, or even a company email address, may initially appear challenging to engage.
Why is a employee management software needed?
According to a 2023 survey by Owl Labs, 81% of organizations plan to allow employees to continue to work remotely, at least part-time, after the pandemic is over. The survey also found that 60% of employers plan to offer a hybrid model with both in-office and remote work options after the pandemic is over.
Another survey by Workfront found that 83% of employers have seen an increase in productivity since allowing employees to work remotely. This suggests that remote work is a viable and productive option for many businesses.
However, remote work can also present some challenges, such as communication and collaboration. This is where intranets can come in handy. Intranets can provide a central place for remote employees to communicate, collaborate, and share information.
According to a survey by ClearPeople, 74% of remote workers say that an employee management software is essential for their work. The survey also found that the most important employee management software solutions features for remote workers are communication tools (85%), file sharing (82%), and company news (79%).
These statistics suggest that there is a growing demand for employee management software among businesses that want to go remote.
Intranets and employee management software can help remote employees to stay connected to the company and their colleagues, and they can also help to improve internal communication and collaboration.
Overall, employee management software solutions can be a valuable tool for businesses of all sizes that want to go remote.
By providing a central place for remote employees to communicate, collaborate, and share information, intranets can help businesses to improve their efficiency, productivity, and employee engagement.
What is employee management?
Employee management encompasses the methods and procedures through which businesses optimize their employees' performance.
This typically involves a strong emphasis on job satisfaction and engagement, as extensive research consistently shows that content and engaged employees tend to be more productive.
Employee management can be subdivided into various key areas, and organizations should prioritize it right from the initial stages of considering a potential candidate for a job role.
From the recruitment and onboarding processes to ongoing monitoring, recognition of achievements, and eventual departures, effective employee management plays a pivotal role in both cultivating and retaining a skilled and talented workforce.
Employee management is the process of ensuring that employees are performing their jobs to the best of their abilities in order to achieve the organization's goals.
It involves a wide range of tasks, including:
- Recruiting and hiring: Finding and hiring the right people for the job.
- Onboarding: Getting new employees up to speed and acclimated to the company culture.
- Training and development: Providing employees with the skills and knowledge they need to be successful.
- Performance management: Setting goals and expectations for employees, and providing feedback on their performance.
- Compensation and benefits: Ensuring that employees are fairly compensated and have access to the benefits they need.
- Employee engagement: Creating a positive work environment where employees feel valued and supported.
- Employee relations: Maintaining a healthy relationship between employees and management.
Employee management is an important part of any organization, regardless of size or industry. By effectively managing their employees, organizations can improve productivity, efficiency, and profitability.
Here are some of the key benefits of effective employee management:
- Improved productivity: When employees are well-managed, they are more likely to be motivated and engaged in their work. This can lead to improved productivity and efficiency.
- Reduced costs: Effective employee management can help to reduce costs by reducing turnover, improving employee morale, and reducing accidents.
- Increased customer satisfaction: When employees are well-managed, they are more likely to provide excellent customer service. This can lead to increased customer satisfaction and loyalty.
- Improved organizational culture: Effective employee management can help to create a positive and supportive work environment. This can lead to improved organizational culture and morale.
Overall, effective employee management is essential for any organization that wants to be successful.
By investing in their employees, organizations can reap a number of benefits, including improved productivity, reduced costs, increased customer satisfaction, and improved organizational culture
What are the features of an employee management software solution
When evaluating which employee management software solution suits your company best, it's essential to consider specific key features.
These encompass transparency, well-defined communication channels, employee recognition, and avenues for fostering engagement.
A comprehensive employee management solution should encompass various aspects, including employee experience, scheduling, performance monitoring, people analytics, and more, ensuring it caters to the needs of all employees, including deskless workers.
This necessitates that your selected software must be equally accessible and user-friendly for deskless workers as it is for the rest of your organization.
When choosing employee management software, consider the following key features:
- Transparency: Provides access to important information, such as their performance reviews, salary information, and company policies.
- Communication: It should provide clear channels for communication between employees and managers, and between employees themselves.
- Recognition: Allows managers to recognize and reward employees for their achievements.
- Engagement: The software should provide opportunities for employees to engage with each other and with the company.
The software should also cover all aspects of employee management, including:
- Employee experience: It should help companies to improve the employee experience by providing tools for onboarding, training, and performance management.
- Scheduling: Help companies to create and manage employee schedules.
- Performance tracking: Allows companies to track employee performance and identify areas for improvement.
- People analytics: Provide companies with data and insights on their workforce.
Importantly, the software should be accessible and intuitive for all employees, including deskless workers. This means that the software should be easy to use and navigate on any device, regardless of location.
Overall, the best employee management software for your company will depend on your specific needs and requirements. However, the features listed above are a good starting point for your search.
Benefits of Using Employee Management Software
Employee management software offers a number of benefits to businesses of all sizes, including:
- Improved efficiency and productivity: can help businesses to improve efficiency and productivity by automating tasks, streamlining processes, and providing employees with a central place to find information and share resources. This can free up employees to focus on more strategic and value-added work.
- Reduced costs: helps businesses to reduce costs by reducing the workload on employees, improving accuracy, and reducing waste. For example, employee management software can automate tasks such as payroll processing and time tracking, which can save businesses time and money.
- Improved communication and collaboration: improve communication and collaboration by providing employees with a central place to communicate with each other, share files, and collaborate on projects. This can help to break down silos and improve teamwork.
- Increased employee engagement: increase employee engagement by providing employees with tools to manage their own careers, access training and development resources, and receive feedback from their managers. This can help employees to feel more valued and motivated.
- Improved compliance: helps businesses to comply with complex HR and employment regulations. For example, employee management software can help businesses to track employee training, performance, and compensation.
Overall, employee management software can help businesses to improve their efficiency, productivity, costs, communication, collaboration, employee engagement, and compliance.
Here are some additional benefits of using employee management software:
- Enhanced employee experience: Employee management software can provide employees with a user-friendly interface and mobile access to their HR information. This can make it easier for employees to manage their careers and access the resources they need.
- Improved decision-making: Employee management software can provide businesses with data and insights on their workforce. This information can be used to make better decisions about hiring, training, performance management, and more.
- Increased scalability: Employee management software can help businesses to scale their operations more easily. For example, employee management software can automate tasks and streamline processes, which can help businesses to handle more work without having to hire more staff.
If you are looking for a way to improve your employee management processes, employee management software is a good option to consider.
What are the 4 Best Employee Management Software Solutions in the Market
We've all heard it: Your employees play a pivotal role in driving your company's success.
However, the sheer volume of tasks on your plate – from tracking work hours and assignments to ensuring knowledge levels and paperwork compliance – can make employee management a formidable challenge. Effectively and efficiently managing employees is no small feat.
That's where employee management software comes into play. It's specifically designed to alleviate this burden and streamline every facet of employee management. With this software in your corner, maintaining a productive, engaged, and satisfied workforce becomes a breeze.
Wondering where to find these solutions?
Look no further – you're in the right place! Explore our list of top employee management tools to discover the perfect fit for your requirements and budget.
To address this need, we have outlined these tools below.
1.AgilityPortal
AgilityPortal is strategically designed to facilitate surveys, e-learning, forms, and third-party integrations, ensuring effective engagement with deskless employees, regardless of their location. Rather than juggling separate systems for communication, onboarding, micro-learning, forms, checklists, and scheduling, AgilityPortal consolidates all these employee management functions into a single, user-friendly platform.
Moreover, its flexible pricing structure, ranging from $3 to $6 per user per month, ensures accessibility for businesses of all sizes.
Whether you have a few or many deskless workers in industries like retail, hospitality, or others, AgilityPortal provides the necessary employee management tools to streamline their tasks and enhance productivity.
AgilityPortal is a cloud-based intranet platform that offers a variety of features to help businesses improve communication, collaboration, and productivity.
Features of AgilityPortal:
- Employee directory: AgilityPortal provides a central place for employees to find contact information, job titles, and other information about their colleagues.
- Company news: AgilityPortal allows businesses to share company news and announcements with employees in a central location.
- File sharing: AgilityPortal allows employees to share files with each other and with their teams.
- Task management: AgilityPortal provides tools for creating and managing tasks, as well as tracking progress and deadlines.
- Discussion forums: AgilityPortal provides discussion forums where employees can ask questions, share ideas, and collaborate on projects.
- Knowledge base: AgilityPortal allows businesses to create a knowledge base of company policies, procedures, and other important information.
- Integration with other systems: AgilityPortal can be integrated with other systems, such as HR systems and CRM systems, to streamline workflows and improve efficiency.
Top benefits of AgilityPortal:
- Improved communication and collaboration: AgilityPortal provides a central place for employees to communicate and collaborate with each other. This can help to improve teamwork and productivity.
- Increased employee engagement: AgilityPortal allows businesses to share company news and announcements with employees, and to provide them with tools for communication and collaboration. This can help to increase employee engagement and morale.
- Improved efficiency and productivity: AgilityPortal can help businesses to improve efficiency and productivity by automating tasks, streamlining processes, and providing employees with a central place to find information and share resources.
- Reduced costs: AgilityPortal can help businesses to reduce costs by reducing the workload on employees, improving accuracy, and reducing waste.
so that means, AgilityPortal is a powerful intranet platform and employee management that can help businesses of all sizes to improve their communication, collaboration, productivity, and employee engagement.
2. Kissflow
Kissflow is compatible with Android and iOS platforms and provides real-time reporting capabilities. However, it's worth noting that integrations may not always function seamlessly, and there can be occasional gaps in customer support.
Regarding pricing, Kissflow's Small Business plan is priced at $15 per user per month, while customized quotes are available for larger enterprises.
Features of Kissflow:
- Business process automation (BPA): Kissflow allows users to automate repetitive, rule-based processes, such as employee onboarding, purchase orders, and expense approvals. This can help to improve efficiency and accuracy, and reduce the workload on employees.
- Case management: Kissflow can be used to manage complex cases, such as customer support tickets and product defects. This can help to improve visibility and tracking, and ensure that cases are resolved quickly and efficiently.
- Project management: Kissflow can be used to plan, track, and manage projects of all sizes. This can help to improve team collaboration and communication, and ensure that projects are completed on time and within budget.
- Communication and collaboration: Kissflow provides a variety of tools for communication and collaboration, such as discussion forums, task and project boards, and real-time notifications. This can help to improve teamwork and productivity.
- Reporting and analytics: Kissflow provides a variety of reports and analytics that can help users to track their progress, identify areas for improvement, and make informed decisions.
Top benefits of Kissflow:
- Improved efficiency and productivity: Kissflow can help businesses to improve efficiency and productivity by automating repetitive tasks, streamlining processes, and improving communication and collaboration.
- Reduced costs: Kissflow can help businesses to reduce costs by reducing the workload on employees, improving accuracy, and reducing waste.
- Improved customer satisfaction: Kissflow can help businesses to improve customer satisfaction by providing tools for managing customer support cases and tracking customer feedback.
- Increased employee engagement: Kissflow can help businesses to increase employee engagement by providing tools for communication and collaboration, and by empowering employees to automate their own work.
Overall, Kissflow is a versatile and powerful platform that can help businesses of all sizes to improve their efficiency, productivity, and customer satisfaction.
3.Monday.com
Monday.com is a user-friendly CRM tool that offers various employee management features. It empowers managers to identify and prioritize tasks while providing employee progress tracking and modules for enhancing employee well-being and learning.
However, it's worth noting that navigating the app can be somewhat confusing. Additionally, Monday.com may become costly for larger teams. For instance, the Basic subscription starts at $49 per month but limits the number of users to just 10, which may not meet the needs of larger enterprises.
Monday.com offers a wide range of features and benefits, making it a popular choice for teams and organizations. Here are some of its key features and top benefits:
Monday.com is a cloud-based work management platform that offers a variety of features to help businesses of all sizes manage their projects, tasks, and teams.
Features of monday.com:
- Boards: Monday.com is organized into boards, which can be used to manage different projects, teams, or workflows.
- Columns: Each board is made up of columns, which can be used to track different aspects of a project, such as tasks, deadlines, status, and priority.
- Cards: Each card represents a task, and can be customized to include all of the relevant information, such as the task name, description, due date, assignee, and status.
- Automation: Monday.com allows users to automate repetitive tasks and workflows. This can help to save time and improve efficiency.
- Integrations: Monday.com integrates with a variety of other tools and platforms, such as Slack, Google Drive, and Salesforce. This allows users to streamline their workflows and keep all of their data in one place.
Top benefits of monday.com:
- Improved visibility and transparency: Monday.com provides a central place to track all of your projects and tasks. This can help to improve visibility and transparency for team members and stakeholders.
- Increased collaboration: Monday.com provides a variety of tools for collaboration, such as commenting, tagging, and task assignments. This can help to improve teamwork and communication.
- Improved efficiency and productivity: Monday.com can help to improve efficiency and productivity by automating tasks, streamlining workflows, and providing a central place to track progress.
- Reduced costs: Monday.com can help to reduce costs by reducing the workload on employees, improving accuracy, and reducing waste.
In summary, Monday.com offers a comprehensive set of features and benefits that cater to various work styles and industries, ultimately helping teams and organizations become more efficient and productive.
4.Workday
Despite its user-friendly interface, Workday falls short in terms of lacking a free version and presenting unclear pricing options. To determine the cost of Workday, businesses must contact a sales representative, which might deter some potential users.
Workday is a cloud-based human capital management (HCM) and financial management software suite that helps organizations manage their workforce, finances, and operations. It offers a wide range of features, including:
- Human capital management: Workday's HCM suite includes features for recruiting and hiring, onboarding, performance management, compensation and benefits, and more.
- Financial management: Workday's financial management suite includes features for accounting, financial reporting, budgeting and planning, and more.
- Analytics: Workday's analytics suite provides users with insights into their workforce and financial data.
- Integrations: Workday integrates with a variety of other systems, such as payroll systems, ERP systems, and CRM systems.
Top benefits of Workday:
- Improved efficiency and productivity: Workday can help organizations to improve efficiency and productivity by automating tasks, streamlining processes, and providing a central place to manage all aspects of HR and finance.
- Reduced costs: Workday can help organizations to reduce costs by reducing the workload on employees, improving accuracy, and reducing waste.
- Improved decision-making: Workday's analytics suite can help organizations to make better decisions by providing them with insights into their workforce and financial data.
- Increased employee engagement: Workday can help organizations to increase employee engagement by providing employees with a self-service portal where they can view their paystubs, benefits information, and other important information.
Overall, Workday is a powerful and versatile HCM and financial management software suite that can help organizations of all sizes to improve their efficiency, productivity, cost-effectiveness, decision-making, and employee engagement.
Here are some additional benefits of using Workday:
- Improved compliance: Workday helps organizations to comply with complex HR and financial regulations.
- Increased agility: Workday's cloud-based platform allows organizations to scale their operations and adapt to change quickly.
- Enhanced employee experience: Workday provides employees with a user-friendly interface and mobile access to their HR and financial information.
If you are looking for a comprehensive HCM and financial management solution, Workday is a good option to consider.
Improve Remote Staffing With the Best Employee Management Software
AgilityPortal is your comprehensive solution, encompassing everything from onboarding and time tracking to talent management and payroll. It doesn't stop there – you can also utilize it for project management, client relationship management (CRM), marketing, or operations. It's a versatile all-in-one tool that caters to various industries.
Experience the convenience of AgilityPortal for free and discover how it simplifies your business operations, enhances productivity, organization, and ultimately contributes to your bottom line!
Wrapping up
Once you've clearly outlined your needs and requirements, navigating the realm of HR tech for your business becomes a smoother journey.
The availability of nearly every employee management solution on your smartphone means both you and your team can perform tasks and work from anywhere, at any time.
This is the beauty of technology – it has the potential to simplify your daily responsibilities.
Utilizing a management software solution, such as the options outlined above, streamlines your operations, which is especially valuable for busy business owners juggling countless tasks simultaneously.
By selecting the solution that suits your needs, you'll find it easier to accomplish tasks, anticipate risks, and enhance overall efficiency – all achievable through the power of management software, just in case that point wasn't crystal clear!
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Setting up a new business is no walk in the park, and when it comes to financial support small business owners often struggle to find the help they truly need.
A good question is whether you are confident your small business can survive its first five years—or even the first year. According to the U.S. Bureau of Labor Statistics, 1 in 5 small businesses fail within the first year, often due to poor financial planning and lack of strategic support.
Starting a business in 2025 means navigating a rapidly evolving economy, rising costs, and tighter competition. While passion and innovation are essential, your financial plan will ultimately determine your success.
Even the most exciting ideas can fall apart without a clear strategy for managing cash flow, expenses, and funding.
This article will guide you through building a brilliant financial plan tailored for small business success in 2025.
Whether launching a new venture or refining your current operations, you'll learn how to align your budget with your goals, forecast more accurately, and gain the financial stability needed to grow.
With the right plan, you'll gain investor confidence, make smarter decisions, and future-proof your business for the challenges ahead.
What is a Financial Plan for a Business?
What is a financial plan for a business? It's a strategic tool that helps determine whether a business idea is financially viable and provides a roadmap to maintain long-term financial health.
A financial plan is a crucial part of any business plan, offering clarity and direction as the business evolves. It typically includes three core financial statements: the income statement, the balance sheet, and the cash flow statement.
Each of these sections comes with a brief explanation or analysis to help interpret the numbers.
Together, they provide insight into profitability, liquidity, and overall financial stability—key metrics every business needs to track.
Who Needs a Financial Plan?
Financial planning isn't just for the wealthy—it's a valuable tool for anyone looking to take control of their financial future.
Regardless of your income or life stage, having a structured financial plan helps you set clear objectives, stay focused, and feel confident about your path.
A personalized financial plan offers more than just guidance—it acts as a roadmap to help you navigate major life events and unexpected changes.
Whether saving for a home, preparing for retirement, or adjusting to new financial responsibilities, a solid plan ensures you're making informed decisions.
You'll find financial planning especially beneficial if you're:
- Buying your first home or upgrading your current one
- Experiencing a significant change in income or expenses
- Starting or growing a family
- Thinking ahead to retirement and long-term savings
- Organizing your assets through estate or legacy planning
A proactive approach to your finances helps you reach your goals and builds resilience, allowing you to adapt to life's curveballs with greater ease and security.
Understanding the Role of a Financial Plan in Business Success
If you're starting a new business and wondering what a financial plan is, it's more than just budgeting—it's a strategic roadmap that outlines how your business will manage income, control costs, and reach long-term financial goals.
A financial plan brings clarity and control to your operations by linking daily decisions to your company's vision.
The importance of financial planning for small businesses cannot be overstated. According to the U.S. Bureau of Labor Statistics, around 20% of small businesses fail within the first year, often due to poor financial management.
A solid financial plan can help avoid this fate by providing insight into cash flow, funding needs, and operational priorities.
So, what is a financial plan example?
It could include projected income statements, balance sheets, cash flow forecasts, expense breakdowns, and growth targets. These documents serve internal strategy and inspire confidence among lenders, investors, and stakeholders.
A good financial plan helps businesses:
- Manage cash flow more efficiently to avoid shortfalls
- Set realistic goals and map out scalable growth strategies
- Present a strong, credible financial position to stakeholders
Ultimately, a financial plan enables small businesses to stay agile, make informed decisions, and achieve lasting success—even in uncertain economic environments.
Why Is a Financial Plan Important to Your Small Business?
A solid financial plan not only boosts your confidence in managing your business but also gives you clearer insights into how to allocate resources effectively.
It reflects a commitment to responsible spending and demonstrates your company's ability to meet its financial responsibilities.
With a financial plan, you can assess how specific decisions may impact revenue and identify when it's appropriate to use reserve funds.
Also, a financial plan is a powerful asset when presenting your business to potential investors. It highlights how your organization manages expenses, generates income, and plans for growth.
Most importantly, it provides a clear picture of your current financial position and outlines what's needed—through sales or investment—to achieve key financial goals.
Financial Plan for Beginners?
1. Develop a Sales Forecast
A critical component of any business financial plan is the sales forecast—an estimate of the revenue your business expects to generate over the next three years.
Start by building a spreadsheet that outlines each quarter of your fiscal year. Include key columns for product or service names, unit prices, units expected to be sold, and projected revenue.
If your business is already up and running, review past sales reports to identify seasonal trends or growth patterns you can use to inform future projections.
For startups without existing sales data, begin by calculating your cost of production per item or service. From there, estimate how much you plan to sell based on market research, competitor benchmarks, or industry demand.
Not confident in your manual forecasting skills? There are plenty of tools and software solutions available that can help you automate and refine your sales projections with greater accuracy.
A sales forecast estimates your future revenue and is crucial for building a solid financial plan.
Here's how to create one:
- Set up a spreadsheet to track products, prices, and projected sales.
- Use past sales data to identify trends (if your business is already operating).
- Estimate unit sales and pricing based on market research for new businesses.
- Forecast monthly revenue for the first year, then annually for Years 2 and 3.
- Use tools like QuickBooks or LivePlan to improve accuracy.
- Compare your forecast to industry benchmarks to ensure it's realistic.
This helps demonstrate your business's potential profitability to investors and lenders.
A well-prepared sales forecast isn't just for internal planning—it also builds confidence with potential investors or lenders.
It demonstrates that your business has a clear growth trajectory and can generate consistent revenue, making it more attractive for financial backing.
2. Outline Your Business Expenses
After completing your sales forecast, the next step is to create a detailed breakdown of your business expenses.
This section shows investors that your business can realistically afford to produce its products or services and maintain profitability. Ideally, your total expenses should remain below your projected revenue.
Start by identifying all your business costs and categorizing them into fixed and variable expenses:
- Fixed costs remain consistent throughout the year—examples include rent, insurance, and salaries.
- Variable costs fluctuate depending on operations and sales volume, such as marketing, shipping, or raw materials.
While some costs like production or rent may be straightforward, others—like taxes or maintenance—may require estimation.
Your expense forecast helps assess financial feasibility and ensures you're planning for both predictable and unexpected costs.
3. Build a Cash Flow Statement
A cash flow statement outlines the movement of money into and out of your business over a specific period.
It's a key component of your financial plan, as it shows whether your company generates enough income to cover its operating expenses and obligations.
The goal is to maintain positive cash flow, which means more money is coming into the business than going out. This signals healthy financial management and ensures you can pay bills, invest in growth, and handle unexpected costs.
To create a cash flow statement:
- Use historical profit and loss records to calculate incoming revenue and outgoing expenses.
- If you're a startup, make realistic projections using your estimated sales and known expenses.
- Always account for potential payment delays from clients or vendors. Adding a buffer for late invoices helps you avoid cash shortfalls.
Being conservative and realistic in your estimates helps you prepare for real-world financial conditions.
A clear cash flow projection gives investors confidence in your business's financial stability and helps you stay in control of your financial health.
4. Create an Income Projection Forecast
An income projection, a profit and loss forecast, provides a forward-looking snapshot of your business's expected revenue, costs, and net profit over a specific period. It's a crucial part of your financial plan, especially when presenting to investors or lenders who want to understand your business's long-term viability and profitability.
This document includes your projected sales, the direct costs of producing those goods or services, and your estimated operating expenses. The result is a forecast of your expected net income—essentially showing whether your business will be profitable.
If your business is already up and running, focus your forecast on the upcoming year.
For new ventures, consider projecting income over two to three years to demonstrate sustainability and growth potential.
To build an accurate forecast:
- Use sales forecasts and expense estimates as the foundation.
- Base your projections on industry trends and historical data, if available.
- Factor in seasonal variations, economic conditions, and potential business developments.
- Consider using financial forecasting software or consulting a financial advisor for added accuracy.
A well-prepared income forecast builds credibility and can significantly improve your chances of securing funding or investor interest.
Download the free financial projections template excel for a great starting poin.t
5. Build a Forecasted Balance Sheet
A forecasted balance sheet offers a snapshot of your company's projected financial position by outlining what it owns (assets) and what it owes (liabilities).
This document is essential for investors, lenders, and stakeholders to evaluate your business's financial stability and net worth over time.
Assets represent everything your business owns that has value, such as cash, inventory, accounts receivable, equipment, real estate, and intellectual property. Liabilities include financial obligations like loans, taxes, unpaid wages, or outstanding vendor payments.
To create your forecasted balance sheet:
- Start by listing all expected assets, including cash balances, office equipment, inventory, property, and receivables.
- Next, outline projected liabilities, such as credit lines, loan repayments, outstanding invoices, or payroll obligations.
- Subtract total liabilities from total assets to calculate your projected equity or net worth.
A positive balance sheet—where assets outweigh liabilities—demonstrates financial health and signals to investors that your business is solvent and capable of meeting its obligations.
Conversely, if liabilities exceed assets, it may raise red flags about your ability to manage debt.
Having a clear and realistic balance sheet projection not only builds credibility but also helps you plan for future capital needs and operational investments effectively.
Here is a simple balance sheet template excel, feel free to use this financial projections template excel.
6. Identify Your Break-Even Point
Understanding your break-even point is crucial for evaluating the financial viability of your business. It represents the level of sales needed to cover all your expenses—where your total revenue equals total costs. Only after crossing this threshold will your business begin generating profit.
Determining your break-even point gives you a clear financial target and helps you make informed pricing, budgeting, and investment decisions. It also reassures potential investors that your business can become self-sustaining within a reasonable timeframe.
To calculate your break-even point, subtract your variable costs from the unit selling price, then divide your total fixed costs by that result. The formula looks like this:
Break-Even Point = Fixed Costs / (Unit Price – Variable Cost per Unit)
For example, if your fixed costs are $100,000, and each unit you sell brings in $50 in profit after covering variable costs, you'd need to sell 2,000 units to break even.
Most successful businesses break even within two to three years. If your projections show it may take significantly longer—say five years or more—it could signal the need to reassess your business plan or reduce operating costs.
Also consider including an exit strategy in your financial plan. This helps mitigate risks and outlines a path to minimize losses should your business not perform as expected.
7. Plan for Contingencies + (contingency plan template word)
Every business faces unexpected challenges—from sudden market downturns and supply chain disruptions to equipment failure or economic shifts.
That's why it's essential to build contingency planning into your financial strategy.
A contingency plan includes setting aside a financial buffer (often referred to as an emergency fund) to cover unforeseen expenses without derailing your operations. Many financial experts recommend having three to six months of operating costs set aside as a safeguard.
Beyond savings, consider preparing alternative revenue streams or flexible cost-reduction strategies you can implement quickly if revenue drops. This might include renegotiating vendor contracts, scaling back non-essential spending, or leveraging credit lines responsibly.
A solid contingency plan increases investor confidence and gives your team peace of mind—knowing you're prepared for the unexpected.
It's not just about weathering storms, but staying agile and resilient enough to pivot when necessary, keeping your business on track for long-term success. Download out free contingency plan template word.
5 Steps of Financial Planning
1. Define Your Financial Goals
Start by asking yourself: Where do I want to be in 5, 10, or even 20 years? Whether owning a home, retiring early, travelling the world, or funding your child's education, having a clear vision helps shape your financial plan.
Break down your aspirations using the S.M.A.R.T. method:
- Specific: Clearly state what you want (e.g., "Save for a down payment on a house").
- Measurable: Assign a number or milestone (e.g., "Save $30,000 in 3 years").
- Attainable: Make sure the goal is realistic based on your income and expenses.
- Relevant: Focus on what matters most to you and your long-term lifestyle.
- Time-Based: Set a target date for each goal to stay accountable.
Use a digital notebook or spreadsheet to list and categorize your goals into short-term (1–2 years), mid-term (3–5 years), and long-term (5+ years). This will help you prioritize where to start saving and how much to allocate monthly toward each goal.
A great way to boost your financial literacy is through online MBA finance programs. These programs offer practical, flexible education tailored to real-world business needs. Whether you're planning for growth or just managing your first year of revenue, sharpening your financial skills gives you a competitive edge and a better shot at long-term stability.
2. Assess Your Risk Tolerance
Understanding your risk tolerance is essential when creating a financial plan that suits your lifestyle and goals.
Risk tolerance is your comfort level with investment ups and downs—how much loss you're willing to accept in pursuit of higher returns.
Your tolerance depends on factors such as:
- Your age – Younger individuals can typically handle more risk since they have time to recover from market fluctuations.
- Your financial goals – Short-term goals often require safer investments, while long-term goals may benefit from more growth-focused strategies.
- Your income and savings – The more financial stability you have, the more flexibility you may feel when taking risks.
- Current economic conditions—Inflation, interest rates, and political stability can all affect how much risk you're comfortable with.
Use an online risk tolerance quiz or calculator to get a quantified score. This helps align your investments with your comfort level and expected returns.
Consider this score when choosing between conservative options like bonds, balanced mutual funds, or higher-risk investments like stocks or crypto.
Understanding your risk tolerance ensures your financial strategy is realistic, sustainable, and aligned with your peace of mind—even when markets fluctuate.
3. Analyze Your Cash Flow
A solid financial plan starts with knowing exactly where your money is going.
Cash flow analysis tracks the money coming into your accounts (income) and what's going out (expenses). This step helps you identify spending patterns and areas for improvement.
Start by reviewing your last 3–6 months of bank statements.
Categorize your spending into:
- Essential expenses - Rent or mortgage, utilities, groceries, insurance, transportation.
- Discretionary expenses - Dining out, subscriptions, shopping, entertainment.
Once categorized, subtract your total expenses from your income to see your net cash flow.
Use budgeting apps like YNAB, Mint, or Excel templates to automate your tracking. Set a monthly review reminder to stay accountable.
After this analysis, you may find non-essential costs that can be reduced or eliminated. Even small changes—like cutting unused subscriptions or reducing takeaway meals—can free up cash for savings, investments, or emergency funds.
Understanding your cash flow gives you control over your finances, prevents overspending, and ensures your financial plan is based on accurate, real-world data.
4. Protect Your Assets
Protecting what you own is a critical part of any strong financial plan.
Start by calculating your net worth—the total value of your assets (home, car, savings, investments) minus your liabilities (loans, credit card debt). This gives you a clear picture of what needs protection.
Once you understand your financial standing, evaluate your insurance coverage:
- Homeowners or renters insurance for property and personal belongings.
- Auto insurance with sufficient liability coverage.
- A Personal Liability Umbrella Policy (PLUP) for extra protection in case of major claims or lawsuits.
- Life insurance—either term (for affordable temporary coverage) or permanent (whole, universal, or variable universal life), depending on your long-term needs and family situation.
- Long-term care insurance to protect your retirement savings from healthcare-related expenses later in life.
Review your insurance policies annually or when your life circumstances change (e.g., marriage, new home, children).
Speak with an independent insurance advisor to ensure you're neither underinsured nor overpaying.
With the proper protection in place, you're shielding your financial future from unexpected events—and giving yourself peace of mind.
5. Evaluate Your Investment Strategy
Your investment strategy should align with your financial goals, timeline, and risk tolerance.
Begin by identifying your approach:
- Active Investing involves hands-on management, frequent trading, and efforts to outperform the market. This strategy demands time, expertise, and often higher fees.
- Passive Investing focuses on long-term growth by tracking market indexes (like the S&P 500), often through ETFs or index funds. It typically involves lower costs and less frequent trading.
- Define your investment goals - Are you saving for retirement, a home, or college tuition?
- Consider your time horizon - The longer your timeline, the more risk you may be able to take.
- Evaluate your current portfolio - Is it diversified? Are your investments aligned with your goals?
- Rebalance your portfolio regularly to maintain your desired asset allocation.
If you're unsure which path suits you best, consult with a financial advisor or consider a hybrid approach, where part of your portfolio is passively managed and another part actively managed.
Choosing the right strategy is not just about returns—it's about aligning your investments with your life goals and peace of mind.
Key Challenges Small Businesses Face When it Comes to Financial Planning
- Unpredictable Cash Flow - Many small businesses experience irregular income streams, especially in the early stages. This makes it difficult to forecast revenue and plan for future expenses. Late payments from clients or seasonal fluctuations can leave businesses scrambling to cover costs.
- Limited Resources and Budget - Small businesses often lack dedicated financial experts or advanced tools. With limited time, staff, and money, financial planning is either put on hold or handled by someone without formal training in accounting or finance.
- Lack of Financial Literacy - Many small business owners are passionate about their product or service but may not fully understand financial statements, forecasting, or budgeting. This can lead to poor decision-making and prevent the business from growing sustainably.
- Difficulty Accessing Capital - Securing loans or investment requires detailed financial plans and projections. Small businesses that struggle to create professional financial documents may find it hard to gain the trust of investors or lenders.
- Overestimating Revenue, Underestimating Expenses - A common trap is being overly optimistic. Overestimating how much revenue will come in and underestimating how much things cost can result in shortfalls and missed targets.
- Economic and Market Volatility - Changes in interest rates, inflation, or supply chain disruptions can derail financial forecasts. Small businesses are more vulnerable to external shocks, making contingency planning even more important.
- Scaling Without a Plan - Rapid growth without financial controls can be just as dangerous as stagnation. Businesses that grow quickly may overextend themselves, take on too much debt, or fail to manage increased operational costs.
Best Tools and Resources for Small Business Financial Planning
Here's a list of some of the best tools and resources for small business financial planning, including top-rated financial planning apps that help manage budgets, cash flow, forecasting, and more:
#1. QuickBooks
Best for: Accounting & financial reporting
A go-to tool for small businesses, QuickBooks helps with expense tracking, payroll, invoicing, and generating financial statements. It also offers forecasting tools and integrates with many other apps.
Why it's great: Easy to use, scalable, and trusted by millions of businesses.
#2. Xero
Best for: Online accounting & collaboration
Xero is a cloud-based accounting software ideal for small businesses that want real-time collaboration with bookkeepers and accountants.
Why it's great: User-friendly interface, strong financial reporting features, and great for managing cash flow.
#3. Wave
Best for: Free accounting and invoicing
Wave offers free invoicing, accounting, and receipt scanning tools. It's perfect for solopreneurs and freelancers just starting out with financial planning.
Why it's great: No monthly fee, intuitive layout, and ideal for basic financial needs.
#4. LivePlan
Best for: Creating business plans & financial forecasting
LivePlan helps businesses build professional business plans and financial projections. It's a great tool if you're pitching to investors or lenders.
Why it's great: Pre-built templates, industry benchmarks, and easy forecasting features.
#5. PlanGuru
Best for: Advanced forecasting & budgeting
PlanGuru is designed for in-depth financial analytics and 3–10 year forecasts. It's more advanced than most small business tools and ideal for growing companies.
Why it's great: Budgeting, forecasting, and reporting all in one platform with powerful analytics.
Wrapping up
Financial planning isn't just for big corporations—it's the secret weapon that helps small businesses thrive.
When you take the time to understand your costs, stay informed, monitor your cash, and invest in solid systems, you set your business up for long-term success. The earlier you start building that financial foundation, the stronger your business becomes.
You don't need to be a financial wizard to make smart choices.
You just need the right mindset, some good habits, and a commitment to staying proactive. With these ten steps in place, you'll be ready to lead your business with clarity, confidence, and control.
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Jill Romford
I am a digital nomad, lover of exploring new places and making friends.
I love to travel and I love the internet. I take pictures of my travels and share them on the internet using Instagram.
Traveler, entrepreneur, and community builder. I share my insights on digital marketing and social media while inspiring you to live your fullest life.
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